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City of London

JPMorgan Exits Nickel Saga as Tycoon Shrinks ‘Big Short’

  • US lender had been Tsingshan’s largest counterparty in nickel
  • Bank took $120 million loss on nickel in first quarter results
Updated on

JPMorgan Chase & Co. no longer has any exposure to the nickel bet that rocked global metals markets earlier this year, after a drop in prices on the London Metal Exchange allowed the tycoon at the center of the squeeze to exit his positions with the bank.

JPMorgan emerged as a central player in the fallout from March’s nickel chaos because it was the largest counterparty to the massive short position held by Chinese entrepreneur Xiang Guangda’s Tsingshan Holding Group Co. The US lender has had a close relationship for years with Tsingshan, and led the group of banks that agreed to backstop the company’s short position after prices spiked.